8-K: Doximity Q2 Fiscal 2026 Revenue Jumps 23% on AI Growth

Doximity reports strong fiscal Q2 2026 results with 23% revenue growth and significant increases in profitability and cash flow, driven by expanding AI tool adoption.

Summary

• Total revenues for the fiscal second quarter ended September 30, 2025, reached $168.5 million, marking a 23% increase year-over-year.
• Net income grew to $62.1 million (36.8% margin) from $44.2 million (32.3% margin) in the prior year.
• Non-GAAP net income was $90.0 million (53.4% margin), up from $61.1 million (44.7% margin) year-over-year.
• Adjusted EBITDA increased 32% year-over-year to $100.8 million, with a margin of 59.8%.
• Diluted net income per share was $0.31, and non-GAAP diluted net income per share was $0.45.
• Operating cash flow surged 37% year-over-year to $93.9 million, with free cash flow also up 37% to $91.6 million.
• A record 650,000 prescribers utilized Doximity's workflow tools, and AI Scribe and DoxGPT users grew over 50% from the prior quarter.
• The company updated its fiscal year 2026 revenue guidance to between $640 million and $646 million, and adjusted EBITDA guidance to between $351 million and $357 million.

Sentiment

Score: 9

Explanation: The filing indicates exceptionally strong financial performance across all key metrics, including revenue growth, profitability, and cash flow. The significant adoption of new AI tools and the upward revision of full-year guidance contribute to a highly positive outlook.

Positives

• Revenue increased by 23% year-over-year to $168.5 million, indicating strong top-line growth.
• Net income grew significantly to $62.1 million, with an improved margin of 36.8% compared to 32.3% in the prior year.
• Non-GAAP net income saw substantial growth to $90.0 million, with an expanded margin of 53.4%.
• Adjusted EBITDA increased by 32% year-over-year to $100.8 million, demonstrating enhanced operational efficiency with a 59.8% margin.
• Operating cash flow and free cash flow both increased by 37% year-over-year, reaching $93.9 million and $91.6 million respectively, highlighting robust cash generation.
• Diluted net income per share and non-GAAP diluted net income per share both showed strong increases.
• Achieved a record 650,000 prescribers using workflow tools, indicating strong user engagement and platform utility.
• AI Scribe and DoxGPT users grew over 50% from the prior quarter, showcasing successful adoption of new AI-powered features.
• Updated fiscal year 2026 guidance for both revenue and Adjusted EBITDA reflects continued confidence in future performance.

Risks

• The timing and scope of anticipated stock repurchases could impact financial metrics.
• Uncertainty in the current economic environment and broader macroeconomic conditions may affect business performance.
• Ability to retain existing members or add new members to the platform and maintain or grow their engagement is crucial.
• Challenges in attracting new customers or retaining existing customers could hinder growth.
• Breaches in security measures or unauthorized access to members' data pose significant reputational and operational risks.
• The ability to maintain or manage growth effectively in a rapidly changing environment is a continuous challenge.
• Operating in a very competitive and rapidly changing environment introduces new and unpredictable risks.

Future Outlook

Doximity provided guidance for its fiscal third quarter ending December 31, 2025, expecting revenue between $180 million and $181 million, and Adjusted EBITDA between $103 million and $104 million. The company also updated its full fiscal year ending March 31, 2026, guidance, projecting revenue between $640 million and $646 million, and Adjusted EBITDA between $351 million and $357 million.

Management Comments

• "Our platform continues to grow with new AI tools to save physicians time."
• "In Q2, a record 650,000 prescribers used our workflow tools to better serve their patients, while our AI Scribe and DoxGPT users grew over 50% from the prior quarter."

Industry Context

Doximity's strong performance, particularly the growth in AI tool adoption, aligns with the broader trend in healthcare technology focusing on improving physician efficiency and reducing administrative burden. The integration of AI-powered clinical reference and search capabilities positions Doximity well within the evolving digital health landscape, where solutions that streamline workflows and enhance patient care are increasingly valued by medical professionals and healthcare systems.

Legal Proceedings

• Legal fees associated with certain non-ordinary course legal matters, including shareholder class action litigation, are excluded from non-GAAP financial measures.

Stakeholder Impact

• Shareholders are likely to benefit from strong financial performance, increased profitability, robust cash flow, and ongoing common stock repurchases.
• Employees may see increased stability and opportunities due to the company's growth and expansion, particularly in AI development.
• Customers (medical professionals) benefit from the continued development and adoption of new AI tools like AI Scribe and DoxGPT, which aim to save time and improve workflow efficiency.
• The company's mission to help doctors be more productive ultimately aims to enable them to provide better care for their patients.

Next Steps

• Doximity will host a webcast on November 6, 2025, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) to discuss these financial results.
• The archived webcast will be available on the company's Investor Relations page shortly after the call.

Key Dates

Recommendation

Doximity's fiscal Q2 2026 results demonstrate exceptional financial health, with robust revenue growth, expanding profit margins, and strong cash generation. The significant adoption of AI tools like AI Scribe and DoxGPT highlights successful product innovation and market penetration, reinforcing its position as a leading digital platform for U.S. medical professionals. The upward revision of full-year guidance further underscores management's confidence and the company's positive trajectory. These factors, combined with a strong balance sheet and consistent stock repurchases, make Doximity a compelling 'strong buy' for investors seeking growth in the digital healthcare sector.

Keywords

Doximity, DOCS, healthcare technology, digital health, medical professionals, AI tools, physician workflow, financial results, quarterly report, SEC filing, EBITDA, cash flow